You Are Thinking of Purchasing a 5-Year Bond,with a Face

question 113

Multiple Choice

You are thinking of purchasing a 5-year bond,with a face value of $8,000,on the secondary bond market.The bond was issued three years ago,so it will mature two years from today.If the interest rate is 10 percent (0.10) per year,what is the value of the bond?

• A)$6,611.57
• B)$8,000.00
• C)$4,967.37
• D)$6,010.52
• E)$7,272.73

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Definitions:

Volunteer Bias

A distortion in research results due to differences between those who choose to participate in studies and those who do not.

Experimenter's Bias

A form of bias in research where the outcomes are influenced by the researcher's expectations or preferences.

Confirmation Bias

A cognitive bias that leads individuals to give more weight to evidence that confirms their existing beliefs and dismiss evidence that contradicts them.

Statistical Measure

A value that represents a characteristic of a set of data, such as mean, median, or mode.